Hotel Industry Performance Asia Pacific

Hotel Occupancy in the Asia Pacific Region Flat at 66.3% December 2013

The regions occupancy for December remained flat at 66.3 percent; its average daily rate dropped 3.7 percent to US$125.91; and its revenue per available room was down 3.7 percent to US$83.46.

Hotels in the Asia Pacific region experienced mixed results in the three key performance metrics during December 2013 when reported in U.S. dollars, according to data compiled by STR Global.

The region’s occupancy for December remained flat at 66.3 percent; its average daily rate dropped 3.7 percent to US$125.91; and its revenue per available room was down 3.7 percent to US$83.46.

“As with regional economic growth, hotel performance in Asia Pacific varied widely by country and market through a variety of reasons, including: oversupply, regulatory challenges, political uncertainty, increased demand and financial resurgence”, said Jesper Palmqvist, area director for Asia Pacific at STR Global. “South Korea, China and India generally faced tough tasks to follow up from strong performances in 2012 whereas Thailand, Japan and Australia saw growth across all metrics for 2013”.

“Apart from the continuing story that major Chinese hubs still have significant planned growth over existing supply, the pipeline has seen a shift with fewer projects in India and more in Indonesia, but also growth in smaller markets such as Sri Lanka”, Palmqvist said. “In terms of what’s due in 2014 by property class, there is growth in Midscale projects, but majority of new openings will remain in the Upscale and Luxury segments”.

Highlights from key market performers for December 2013 in local currency (year-over-year comparisons):